U.S. President Donald Trump has rolled out sweeping tariffs on imports from more than 90 countries, escalating tensions in what many see as his ongoing trade war.
The tariffs, announced Aug. 1 and enforced Aug. 7, range between 10% and 50% depending on the country. Companies importing foreign goods into the U.S. must now pay significantly higher duties, with experts warning that many will pass those costs directly to consumers.
Brazil and India face the steepest penalties at 50%. Brazil’s rate jumped from 10% after the prosecution of former President Jair Bolsonaro, while India’s levy doubled from 25% in response to China’s continued oil purchases from Russia. The decision has strained ties between Washington and New Delhi, despite the two leaders sharing similar populist and nationalist outlooks.
India has 21 days to respond before the tariffs fully take effect. If enforced, nearly all of India’s $86.5 billion in annual exports to the U.S. would become commercially unviable. Exporters warn they cannot absorb more than a 10-15% increase, and a 50% tariff would devastate industries.
Electronics and pharmaceutical exports remain exempt, but the damage could ripple across India’s domestic economy. “Labour-intensive exports like textiles and gems and jewelry will take the fall,” Priyanka Kishore of Asia Decoded, a Singapore-based consultancy, told the BBC.
Trump justified the move by pointing to India’s ties with Russia, though he has not imposed the same tariffs on countries like China or Turkey. “It may happen … I can’t tell you yet,” Trump told reporters. “We did it with India. We’re doing it probably with a couple of others. One of them could be China.”
Critics argue the president singled out India, noting his previous comments describing its economy as “dead” and claiming the country does “very little business” with the U.S. These remarks, combined with the tariffs, may force India to reconsider its strategic alignment.
“One hopes this is short term, and that talks around a trade deal slated to make progress this month will go ahead. Otherwise, a needless trade war, whose contours are difficult to gauge at this early juncture, will likely ensue,” Central Bank Governor Patel wrote in a LinkedIn post.
With competitors like Vietnam offering lower tariffs, Trump’s aggressive approach risks slowing U.S. trade momentum. The coming weeks will determine whether the White House and India can negotiate a middle ground or if this standoff sparks a deeper economic fallout.
